Singapore-Mexico trade to get a boost as country heads agree to promote TPP ratification

TPP is expected to slash tariffs and trade barriers for 40% of the global economy and establish the largest free trade area in the world.

Enrique Pena Nieto, the President of Mexico, said he and Tony Tan, the first Singapore President to visit Latin America, have agreed to deepen bilateral relations and also will push for the ratification of Trans-Pacific Partnership (TPP).

TPP, the trade pact has 12 nations as parties including Singapore and Mexico is aimed at boosting trade across the Pacific.

After talks at the capital's ornate National Palace, Mr Pena Nieto said the two agreed to deepen bilateral relations, bolster ties between South-east Asia and Latin America and "promote the ratification" of the TPP.

Tan on his part appreciated the economic and energy reforms enacted by Pena Nieto over the past four years.

"These reforms have created more opportunities for trade and investment, and the ratification of TPP will further increase opportunities," he said.

Once ratified by the 12 participating countries, TPP backers say the deal will slash tariffs and trade barriers for 40% of the global economy and establish the largest free trade area in the world.

The 12 signatories are: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.

On 9 June, both Singapore and Mexico signed two MoUs during the visit by the City's Trade and Industry Minister Lim Hng Kiang spoke to Mexico.

He attended a business form attended by 18 Singapore companies and said that there are almost 40 companies from the City are operating in Mexico and that he is confident that more will follow the footsteps of the pioneers.

Mexico is Singapore's second-largest trading partner in Latin America but imports from there makes up only 1% of the total imports to the City.